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Why does it make a difference if the F4 portfolio is kept in an IRA vs. a taxable account, except that taxes are deferred?


The main difference is that timing becomes irrelevant. In a regular IRA, all growth will eventually be taxed as regular income, no matter what the holding period, while in a Roth, none of it will ever be taxed, and in a taxable account it will be taxed as long term capital gains.

This invites tinkering with the FF method. Much tinkering has been discussed on this board and maybe on the mechanical investing board in recent months. I've recently bought FF in an IRA myself, and am considering the policy of rebalancing incrementally by replacing whatever the current holding which is furthest down on the RP list with the current number two stock if that's one I don't hold.

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